AMENDMENT NO. 2

 

CONTRACT NO. 51720

 

FOR

 

COMPUTER SYSTEMS DESIGN, MAINTENANCE AND

PROGRAMMING SERVICES

 

Pursuant to Ordinance No.

 

This Contract was made and entered into on the 11TH day of December, 2001, by and between DATA MANAGEMENT CONSULTANTS, INC. (DMC), hereinafter called Contractor, and the City of Portland Bureau of Fire and Police Disability and Retirement, hereinafter called FPDR.

 

1.  The contract was extended by Amendment No. 1 to December 31, 2007. However, continued computer services by DMC is necessary and this contract is hereby extended for an additional five years through December 31, 2012.

 

2.  Additional work continues and is necessary as described in Exhibit “A”.

 

3.  Additional compensation is necessary. Total compensation and reimbursement under this amendment shall not exceed an additional $100,000.00.

 

All other terms and conditions shall remain unchanged and in full force and effect.

 

   Data Management Consultants, Inc.

 

 

   By:          

         Date

                         Richard J. Gustafson, President

   10445 SW Canyon Road, Suite 266

   Beaverton, Oregon 97005          (503) 672-9000

 

 

Approved as to Form:  CITY OF PORTLAND

 

   By:          

City Attorney  Date   Auditor      Date

 

                 By:          

    Linda L. Jefferson  Date

       

 

 

 

 

EXHIBIT “A”

 

By Contract No. 51720, Data Management Consultants, Inc. (DMC) developed and provided the Bureau of Fire and Police Disability and Retirement (FPDR) with systems design and programming services. DMC’s contract with the FPDR will expire on December 31, 2007 and an extension to the contract period of an additional ten years with costs not to exceed an additional $200,000 is requested.

 

DMC has been the FPDR’s computer services and software support specialists since 1986. Although the FPDR owns the program developed by DMC, it is expected that more time and money would be expended by trying to have a new vendor take over its work.

 

DMC has developed a very unique database using Microsoft Visual Foxpro for processing Pension, Disability, Expediting, Time Loss and Accounts Payable Systems. Each of these systems are very unique, even the Accounts Payable System, and could not be replaced by any off the shelf software. The database has been totally developed and supported by DMC as per the FPDR requests and development project list. The database accomplishes seamless integration into other Microsoft products such as Microsoft Word and Excel. Foxfire, a third party report writer, is integrated into the database. Crystal Reports was also used to provide some unique narrative type reports. The database integrates into Create a Check software to produce signed checks on blank check stock with check protection and proper security. The database also integrates into ACH software as well. A third party product called Easi Tax Software is used for producing some of the W2 and 1099 Miscellaneous forms. DMC also custom developed the software to produce the 1099R forms and electronic filing files to the IRS.

 

The database does import and export data files with the City Systems. Time and Payroll data from TARS is imported into the database and used to calculate the payments for Expediting and long Term Disability. The TARS data is also processed to keep track of Time Loss for pension Calculation purposes. Master file information such as name, address and job classification is imported and updated from the City Systems. The database produces Insurance Deduction, Positive Pay and General Ledger file information for sending to the City Systems.

In addition, DMC is currently in the middle of working with the City’s SAP project. They will need to reprogram all interfaces that currently bring information into the FPDR’s system from other City bureaus. After completion of the above interfaces, DMC will be developing a financial interface. FPDR has also contacted the City’s Bureau of Technology Services (BTS) and has been advised that BTS is not knowledgeable about the FPDR’s program and recommended DMC continue its work. DMC also provides monthly maintenance to the FPDR. DMC is currently also in the process of working on security upgrades. In addition, should the FPDR Board of Trustees make a decision to implement benefits under the Pension Protection Act, DMC will need to work on reprogramming the FPDR’s program to comply with the Pension Protection Act. This will be an enormous project that will take time and require significant knowledge of the FPDR’s programming.

 

DMC is familiar with and has the knowledge of the FPDR’s system and it is reasonable to have them continue their services. DMC has been the sole provider for all software used by FPDR since 1986. Over this period of time DMC has gained a tremendous insight into the internal operation and requirements of FPDR. It would be extremely difficult and very expensive to have any other vendor achieve the level of complete understanding of all our software systems and operations that DMC has gained over the past twenty-one year business relationship. DMC has been provided great continuity for FPDR. Rick Gustafson, the president of DMC is now working with the fourth administrator of FPDR and has seen every position in the office turn over.

 

DMC is a local company and they have always been very responsive to our needs and support. DMC is a Microsoft Solutions provider. DMC does provide software development and software systems support to many other clients in 12 states. DMC has been an Oregon Corporation since 1976. Over the past few years FPDR did utilize an outside consultant to evaluate any other possible software solutions and the recommendation was to continue with the systems developed by DMC and continue to grow and enhance those systems.